The EU is currently negotiating a comprehensive Economic Partnership Agreement with all fourteen countries of the region (Cook Islands, Fiji, Kiribati, the Marshall Islands, Micronesia, Nauru, Niue, Palau, Papua New Guinea, Samoa, the Solomon Islands, Tonga, Tuvalu and Vanuatu). The comprehensive agreement would cover trade in goods, trade in services, development co-operation and trade-related issues like food health and safety issues, technical barriers to trade, agriculture, sustainable development and competition.

Trade picture

Pacific countries:

Regional trade is based on the Pacific Island Countries Agreement (PICTA), which is in the process of being implemented. The region is also negotiating a trade and cooperation agreement with Australia and New Zealand (PACER+).

Six countries in the Pacific region are currently members of the WTO, namely: Fiji, Papua New Guinea, Samoa, Solomon Islands, Tonga and Vanuatu.

Exports to the EU from the Pacific region are dominated by palm oil, coffee, coconut, and fish and caviar.

Imports from the EU to the Pacific region are dominated by electrical machinery and equipment.

Overall, trade between the EU and the Pacific countries is very small both in absolute and in relative terms.

duty and quota-free exports from Papua New Guinea and Fiji to the EU as of 1 January 2008

asymmetric and gradual opening of markets to EU goods, taking full account of differences in levels of development and sensitive sectors – for Papua New Guinea: liberalising 88% of EU imports with the agreement, excluding the most sensitive economic sectors (e.g. meat, fish, vegetables, furniture and jewellery) and for Fiji: committed to liberalise 14% of EU imports to the country, rising to a maximum 87% over 15 years, excluding products from sensitive economic sectors and important for revenue, (e.g. meat, fish, fruits and vegetables, alcohol, tubes and iron)

safeguard provisions: duties and quotas can be reintroduced if imports from the EU disturb or threaten to disturb the economy